Moniepoint Inc., a leading Nigerian fintech firm, is preparing to break into Kenya’s financial market after receiving regulatory approval to acquire a controlling interest in Sumac Microfinance Bank.
The Competition Authority of Kenya has given the green light for Moniepoint to purchase a 78% stake in the Nairobi-based bank. This marks a strategic move by the Nigerian company to deepen its footprint in East Africa’s financial sector after a previously failed acquisition attempt.
According to regulatory documents, the transaction is not expected to cause any disruptions in the workforce or harm public interests. Current employees of Sumac will remain on their existing contracts, ensuring business continuity during and after the transition.
Moniepoint, known for enabling small and medium enterprises across Africa through digital financial services, had earlier attempted to acquire KopoKopo, a local payments firm. Although that deal received approval, it did not go through, with no public explanation given for its collapse.
This latest move signals a shift in strategy. By targeting Sumac—a relatively modest player in Kenya’s microfinance landscape—Moniepoint appears to be opting for a more calculated and stable market entry. Sumac currently holds a 4.3% share of Kenya’s microfinance banking sector.
Founded in 2001 as a cooperative savings and credit organization, Sumac became a licensed deposit-taking institution in 2012. As of December 2023, it managed roughly 16,000 deposit accounts and reported assets totaling 3.013 billion Kenyan Shillings (approximately $23 million).
Moniepoint’s expansion aligns with a broader trend across Africa, where larger financial and technology firms are acquiring smaller banks to accelerate their reach into new territories. Earlier this year, Kenya’s KCB Group and Nigeria’s Access Bank both made strategic acquisitions to strengthen their regional positions.
As the deal moves toward completion, Moniepoint’s entry into Kenya marks a significant step in its ambition to become a pan-African fintech powerhouse.
